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The Advertiser
3 days ago
- Business
- The Advertiser
Canned goods firm Del Monte seeks bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $US912.5 million ($A1.4 billion) in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And US President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $US4 million annually, according to a company statement. Del Monte said that the bankruptcy filing is part of a planned sale of company's assets. Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $US912.5 million ($A1.4 billion) in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And US President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $US4 million annually, according to a company statement. Del Monte said that the bankruptcy filing is part of a planned sale of company's assets. Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $US912.5 million ($A1.4 billion) in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And US President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $US4 million annually, according to a company statement. Del Monte said that the bankruptcy filing is part of a planned sale of company's assets. Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $US912.5 million ($A1.4 billion) in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And US President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $US4 million annually, according to a company statement. Del Monte said that the bankruptcy filing is part of a planned sale of company's assets.
Perth Now
3 days ago
- Business
- Perth Now
Canned goods firm Del Monte seeks bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $US912.5 million ($A1.4 billion) in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And US President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $US4 million annually, according to a company statement. Del Monte said that the bankruptcy filing is part of a planned sale of company's assets.
Time of India
3 days ago
- Business
- Time of India
Del Monte files for bankruptcy: 139-year-old canned food giant struggles amid changing consumer trends
Consumer food major Del Monte , a 139-year- old company once a towering player in the market, has filed for bankruptcy protection. The company said it's doing this because more Americans are choosing healthier or cheaper food options and ignoring canned products, as per the company's statement. Del Monte has secured $912.5 million in financing, called "debtor-in-possession", so that it can keep running while trying to sell its assets. CEO Greg Longstreet said a court-supervised sale is the best way to save and rebuild the company, according to the report by The Hill. Other brands are doing okay, but not enough Del Monte is based in Walnut Creek, California, and it also owns Contadina (tomato products), College Inn and Kitchen Basics (broth), and Joyba (bubble tea). While products like Joyba bubble tea and broth saw some sales growth in 2024, it was not enough to make up for the fall in sales of canned items, as per reports. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Delhi Mosquito Problem? Do This Immediately (Genius!) Mosquito Eliminator Read More Undo ALSO READ: X Down: Thousands report outages in US and UK – what happened and who's affected? Why Del Monte's sales went down Consumer demand is shifting away from preservative-filled canned food toward fresh, healthier choices, according to Sarah Foss of Debtwire. Grocery inflation has also made people turn to cheaper store brands, hurting Del Monte even more, according to The Hill report. Live Events In addition, Trump's 50% tariff on imported steel, since June, increased the cost of making cans, adding pressure on Del Monte. In 2023, Del Monte was sued by a group of lenders who didn't agree with how the company wanted to restructure its debt, as mentioned in the reports. As stated in the report by The Hill, that case was settled in May 2024, but it caused Del Monte to take a loan that raised their yearly interest by $4 million. Del Monte said the bankruptcy is part of a planned sale of the company's assets. FAQs Q1. Why did Del Monte file for bankruptcy? Del Monte filed for bankruptcy because of falling sales in canned foods, rising costs, and changing consumer preferences toward healthier and cheaper options. Q2. Who owns Del Monte Foods ? Del Monte Foods is owned by Del Monte Pacific , a company based in Singapore.
Hindustan Times
3 days ago
- Business
- Hindustan Times
Del Monte files for bankruptcy: What it means for food, grocery prices in US
Del Monte Foods has filed for bankruptcy. The 138-year-old company is looking for a buyer. On Tuesday, Del Monte Foods announced it was voluntarily entering Chapter 11, Reuters reported. The canned foods firm is going through a sale process for all of its assets as well. As per its statement, Del Monte has secured $912.5 million in new funding. This will allow the company to remain afloat as it enters the peak canning season while the sale process is underway. According to court documents, the liabilities of Del Monte Foods were estimated between $1 billion and $10 billion. Del Monte canned tomatoes are seen among other nonperishable goods inside the West CAP Food Pantry in Boyceville, Wisconsin, U.S(REUTERS) Also read: Popular Canned food company Del Monte files for bankruptcy The decision could significantly impact food and grocery prices in the United States. Del Monte is behind some major brands such as College Inn, which sells broth and stocks, and Joyba's tea products. Sarah Foss, global head of legal and restructuring at Debtwire, told CNN that Del Monte cited declining consumer demand for the Chapter 11 bankruptcy filing. 'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,' she added. This led the company to incur increased costs in terms of storing surplus inventory and promotional spending to encourage buyers. Del Monte's bankruptcy needs to be seen in the light of inflation and US President Donald Trump's tariff policies. In May, inflation in the US picked up a bit due to rising food prices. As per a report by the Labor Department, consumer prices jumped 2.4 per cent in May compared with a year ago. In April, the prices had registered a 2.3 per cent increase year-on-year. The figures mean that the Federal Reserve's 2 per cent inflation target remains unfulfilled. This means the central bank is less likely to reduce borrowing costs in the future. As for tariffs, an Associated Press report stated that almost all economists expect that the Trump administration's policies could make things more expensive in the second half of 2025, but the exact impact remains uncertain. In this context, Del Monte Food's bankruptcy and closure could potentially increase food prices. However, the exact impact is expected to become apparent in the next few months. FAQs 1. Has Del Monte Foods filed for bankruptcy? Yes, it filed for Chapter 11 bankruptcy on Tuesday. 2. How much in liabilities does Del Monte Foods have? The estimated liabilities are between $1 and $10 billion. 2. Are Del Monte's non-US subsidiaries included in the bankruptcy filing? No, as per Reuters, the company's non-U.S. subsidiaries are not part of the Chapter 11 proceedings and will continue to operate as usual.
Daily Mail
3 days ago
- Business
- Daily Mail
BREAKING NEWS Beloved grocery staple files for bankruptcy after 138 years on shelves
An American grocery staple just went bankrupt. Del Monte Foods, the 138-year-old company behind some of America's most recognizable pantry staples, has filed for Chapter 11 bankruptcy protection. For decades, the company has produced canned fruits and vegetables for American grocery consumers. The food producer filed for bankruptcy protection late Tuesday night. Del Monte said it plans to sell itself as part of an agreement with key lenders and will continue normal operations during the process. To keep things running, Del Monte secured $912.5 million in financing. The 135-year old company also owns common grocery essentials like College Inn, which sells broth and stocks, and tea brand like Joyba. But the company's portfolio was increasingly unpopular with American consumers, Sarah Foss, the head of legal and restructuring at Debtwire, told 'Del Monte says that consumer demand has declined causing it to incur increased costs related to surplus inventory,' she said. 'It has had to warehouse [products] and attempt to move off shelves with increased promotional spending.' It listed estimated assets and liabilities in the range of $1 billion to $10 billion, according to a filing with the New Jersey bankruptcy court, while the number of creditors is estimated between 10,000 and 25,000. "This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said. Certain of its non-U.S. subsidiaries are not included in the Chapter 11 proceedings and continue to operate as usual, Del Monte Foods said.
